Cameron and Schlumberger Form Subsea Joint Venture

OneSubsea targets subsea oil production and recovery

November 15, 2012 07:00 AM Eastern Standard Time

HOUSTON--(BUSINESS WIRE)--Cameron and Schlumberger today announced the creation of OneSubsea™, a
joint venture to manufacture and develop products, systems and services
for the subsea oil and gas market. This new company will offer a step
change in reservoir recovery for the subsea oil and gas industry through
integration and optimization of the entire production system over the
life of the field. The integration of the production system will be
accomplished by combining superior reservoir knowledge and wellbore
technologies, with industry leading subsea technologies, all together
delivering enhanced productivity, reliability and integrity.

Cameron and Schlumberger have 60/40 ownership of the joint venture,
respectively, and the transaction is subject to regulatory approvals and
other customary closing conditions. Cameron, with its long history of
innovation and firsts in the subsea market, is an industry leader in
design capability, manufacturing excellence and successful
installations. Schlumberger brings a deep understanding of the
reservoir, and industry-leading well completions, subsea processing and
integration platform.

Under the terms of the formation agreement, Cameron will contribute its
existing subsea division and receive $600 million from Schlumberger.
Schlumberger will contribute its Framo, Surveillance, Flow Assurance and
Power and Controls businesses. Cameron will manage the joint venture and
will consolidate it for financial reporting purposes. Cameron will
reflect minority interest in its financial statements for Schlumberger’s
interest in the JV.

Cameron Chairman, President and CEO, Jack B. Moore said, “Our new
venture with Schlumberger provides a powerful marriage of their oilfield
services technology and our subsea equipment heritage. It leverages
Cameron’s flow control expertise, world class manufacturing and
aftermarket capabilities.”

Schlumberger CEO Paal Kibsgaard commented, “This new joint venture,
which combines the forces of two world-class companies, is uniquely
positioned to optimize complete subsea production systems and help our
customers improve production and recovery from their subsea
developments. The broad scientific and technology platform that
Schlumberger brings will enable a total system approach, leading to a
unique and differentiated offering in this rapidly growing market.”

A key priority of the joint venture will be strengthening research and
engineering investment, including complementary projects with the parent
companies, towards the integration of the complete subsea production
system from pore space to the export point, in order to unlock reservoir
potential from our customer’s subsea developments.

Cameron is a leading provider of flow equipment products, systems and
services to worldwide oil, gas and process industries. For more
information, visit www.c-a-m.com.

About Schlumberger

Schlumberger is the world's leading supplier of technology, integrated
project management and information solutions to customers working in the
oil and gas industry worldwide. Employing approximately 115,000 people
representing over 140 nationalities and working in approximately 85
countries, Schlumberger provides the industry's widest range of products
and services from exploration through production.

Schlumberger Limited has principal offices in Paris, Houston and The
Hague and reported revenues from continuing operations of $36.96 billion
in 2011. For more information, visit www.slb.com.

This document includes forward-looking statements regarding the joint
venture and the companies, made in reliance upon the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. The
joint venture and companies’ actual results may differ materially from
those described in forward-looking statements. Such statements are based
on current expectations of the joint venture and companies’ performance
and are subject to a variety of factors, some of which are not under the
control of the joint venture and companies, which can affect the joint
venture and companies’ results of operations, liquidity or financial
condition.

Because the information herein is based solely on data currently
available, it is subject to change as a result of changes in conditions
over which the joint venture and companies have no control or influence,
and should not therefore be viewed as assurance regarding the joint
venture and companies’ future performance. Additionally, the joint
venture and companies are not obligated to make public indication of
such changes unless required under applicable disclosure rules and
regulations.